Reserve Bank of India (RBI) governor Raghuram Rajan, who has been facing heat from the BJP, got support of Confederation of Indian Industry (CII) president, who backed a second term for the RBI governor.
Echoing Union finance minister Arun Jaitley’s comments that personal attacks are unwarranted, CII president Naushad Forbes said, “I don’t think such comments serve us well as a country. They are demeaning. So I agree with the finance minister 100 per cent.”
“I think the RBI governor is doing a great job for the country,” said Forbes. Asked about BJP MP Subramanian Swamy’s comments on Rajan, he said, “I treat such comments as cacophony. It is not a sign of vibrancy.”
Earlier, Jaitley said, “People should be open to discuss all issues and policies, they have a right to support and criticise policies. But the same can’t be said about personalities, which blurs the issue.”
Rajan raised the short-term lending rate from 7.25 to 8 percent and retained them throughout 2014 and lowered the rates in January 2015. He has since then cut them from 1.50 to 6.5 per cent.